Most businesses must file and pay federal taxes on any income earned or received during the year. Partnerships, however, file an annual information return but don’t pay income taxes. Instead, each partner reports their share of the partnership’s profits or loss on their individual tax return. 

Self-Employment Tax

If you have your own business, you must pay Social Security and Medicare taxes. Otherwise, you won’t be covered under the Social Security system.

Employment Taxes

If you have employees, there are federal tax requirements for what you must pay and the forms you have to file. These employment taxes include:

FUTA ensures that people can receive unemployment benefits after losing a job.
Businesses in all states pay state workers’ compensation insurance and unemployment insurance taxes. 

Excise Tax

The federal government taxes businesses that manufacture or sell certain products. If your business uses various types of equipment, facilities, or other products, you may need to pay an excise tax. 

Property Tax

Each state has a different definition of what property is taxable. Some states collect property tax from businesses in commercial real estate locations. Others collect property tax for vehicles, computer equipment, and other business assets. The amount of tax you pay is calculated by the total value of the property or on a certain percentage of the value.

Sales and Use Tax

States may tax the sale of goods and services. Check whether your business has to register to pay and/or collect sales tax in your state. Exclusions in sales tax often include food, clothing, medicine, newspapers, and utilities.
States may also tax your business on the use of goods and services when sales tax has not been collected. This typically applies to goods and services purchased outside of the state where you conduct business.

Estimated Tax

You must pay federal tax on income that is not subject to withholding. Or, if the amount of your federal income tax being withheld is not enough to cover the taxes you owe, you must pay an estimated tax. 

Estimated tax is the method used to pay taxes on income that is not subject to withholding. This includes income from self-employment, interest, and dividends. You may also have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough.